WACC Cost of common equity (rs) Before-tax cost of debt (rd) Marginal tax rate (T) Common shares outstanding Current stock price Long-term debt sells at par value 18.00% 10.00% 40.00% 576 $4.00 Yes Balance Sheet: Assets Cash Account receivable Inventories Plant and equipment, net Liabilities and Equity Accounts pavable and accruals Short-term debt $120.00 $240.00 5360.00 Long-term debt $10.00 $58.00 $1,100.00 $1,712.00 $2,160.00 Common equit Total liabilities and equity Total assets Formulas Market value of total debt Market value of common equi #A/A Total capital Percentage of debt Percentage of common equit After-tax cost of debt Weighted Average Cost of Capital (WACC)